These days there seems to be fewer and fewer good REO properties and the prices are higher and there is a lot of competition.
The data providers are all telling us that there are fewer and fewer REO properties and houses in foreclosure. However, what they don’t tell you is not that there are fewer defaulted note . . . but rather than that the banks have discovered that foreclosing on their customers is bad business and costly. Instead, they can sell off large pools of non-performing notes to Hedge Funds, who skim off their ideal notes and then sell the lower price bands, the under $150,000 notes to smaller investors, like the real estate investors you find at your local REIA.
By tapping into these “non-performing notes” we can get to to the REO before it becomes REO and work with the home owner to modify the note and collect payments or get a short payoff at a profit, or foreclose and evict and still have less into the deal than if we were to buy it as a listed REO property.
Want to learn more? Join us in January when Eddie Speed comes to Kansas City. He will be bringing all of NoteSchool’s Stats to share with us the State of the Industry on the 13th at the MAREI Meeting. He will be coming back on Saturday the 24th for an all Day Seminar to discuss Why Real Estate Investor’s Need to Learn the Note Business and to Explain the Basics.